Senate Democrats worked to shore up support for a student
loan compromise as the White House tried to nudge it across the finish line
Tuesday.
Senate Majority Leader Harry Reid (D-Nev.) said the bill
would be voted on by the full Senate “this week for sure,” and offered a
definitive “yes,” when asked if he was confident a majority of Democrats would back it.
{mosads}The assurance came while many liberal Democrats continued to
grumble about the deal that would tie student loan borrowing rates to the government’s
cost of borrowing with many vowing to oppose it, even as the White House backed the compromise and urged
passage.
Senate Majority Whip Dick Durbin (D-Ill.), who helped broker
the compromise measure, said Tuesday he was still counting votes on the
measure, and readily acknowledged that the compromise came about after
Democrats failed to garner enough votes to advance their preferred approach.
While Democrats may have wanted a freeze of lower student
loan interest rates, Durbin said, “We don’t have 60 votes for that.”
Even some Democrats who planned to support the compromise
were glum about it. Sen. Jay Rockefeller (D-W.Va.) called it the “least bad”
proposal out there.
In an effort to shore up Democratic support, Reid said the
Senate would also vote on a trio of Democratic amendments when the bill hit the
floor later this week.
An amendment from Sen. Jack Reed (D-R.I.) would lower the
rate cap to 6.8 percent from 8.25 percent. That level would equal the current
student loan rate, which doubled on July 1 following congressional inaction.
Another amendment from Sen. Patty Murray (D-Wash.) would
direct all profits made on the student loan program into the Pell Grant
program, which helps lower-income students afford college. The Congressional
Budget Office estimated the compromise bill would reduce the deficit by $715 million
over 10 years.
And the third amendment from Sen. Bernie Sanders (I-Vt.)
would sunset the compromise bill in two years, giving Congress another chance
to debate the issue in the near future.
Senate Republicans appear to be broadly supportive of the agreement,
suggesting there would have to be widespread dissatisfaction among Democrats
for the deal to collapse. Senate Minority Leader Mitch McConnell (R-Ky.) called
it a “good step forward.”
The backers of the compromise remained confident the bill
would pass in the coming days.
“I believe so, I hope so,” said Sen. Angus King (I-Maine)
when asked if the bill had enough support. “But we won’t find out until we get
to the floor.”
“It looks good. We’re working hard,” said Sen. Joe Manchin
(D-W.Va.).
Many Democrats have taken issue with the fact that, down the
road, the compromise could saddle students with higher interest rates than if
Congress did nothing.
While some backers of the compromise touted it as a
long-term solution to student loan borrowing rates, many Democrats made clear
they are eager to revisit the deal in the coming years, before interest rates
rise significantly.
Sen. Tom Harkin (D-Iowa), the chairman of the Senate
Education committee and a backer of the compromise, said he plans to revisit
student loan rates in the Higher Education Act reauthorization, which the
Senate will consider next year.
“Especially in the Higher Education Act reauthorization as
we look at all of college costs and tuition increases. We’re going to look at
all of that stuff. We’re going to look at Pell Grants too. This might be a part
of re-examining how students borrow money, how their families borrow money.
“This deal does not preclude us from looking at this in the
Higher Education Act and maybe suggesting some changes,“ Harkin said.
The effort to coalesce Democratic support came with a White
House push. The compromise came together after negotiators met with President
Obama last week, and the White House officially backed the bill Tuesday.
Education Secretary Arne Duncan called the bill a win for
students, and urged prompt passage.
“We’re all just really, really pleased the Congress is
coming together,” he said. “Folks have worked really, really hard to
get this done and we just urge people to get this done as soon as
possible.”
If the Senate approves the bill, House Republican leaders
have indicated they would be likely to take it up. Speaker John Boehner
(R-Ohio) noted the similarities to the market-based measure the House passed in
May. The White House suggested another market-based approach in its latest
budget proposal.
Alexander Bolton contributed.